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EUR/USD sandwiched for now

In the previous update here, there was an immediate typo in the first sentence, stating that the divergence between the FTSE 100 and the DAX had not stretched out further. Well, of course it has and that was a typo, so my apologies for that. I think the narrative that followed clearly shows that the FTSE 100 is falling whilst that DAX is rising. Anyway, moving on; earlier this morning the EUR/USD did briefly drop below its 21 day moving average, at 1.0794. However, it did not extend very far at all. The low seen was set at 1.0790. Now I did say beforehand; that it could be down to stops underneath 1.0794 that might push it through the level and judging by the price action since, I would say that was correct. So now the stops are done and dusted downside momentum has stalled for now. At the same time, I am not precluding further losses today, just that it has not emerged yet. The EUR/USD is currently trading in between the 21 day and 100 day moving averages (1.0794 and 1.0808), until there is a better excuse for a wider, more dynamic move. The EUR/USD is right now at 1.0797
 

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